Articles Tagged With: FHA Refinance Options

May 1, 2012

FHA Loans For Disaster Victims

Every spring and summer, we report on local communities that become eligible for federal disaster relief, including FHA loans, FHA foreclosure relief and other types of assistance for those who have had homes damaged by natural disasters. One of the most recent examples was our blog post on the relief efforts for those affected by storms in Hawaii, and unfortunately that likely won’t be the only such post we’ll have to make in coming months as tornado season and hurricane season for 2012 approach. What does the FHA offer those affected by natural disasters? There are many programs, but one of the most widely used is the FHA’s Mortgage Insurance for Disaster Victims, also known as a Section 203(h) loan. According to the FHA, “This program helps victims in presidentially | more...

April 27, 2012

FHA Loans: The Road To Refinance

By Joe Wallace

The official White House You Tube channel posted a video on April 18th, 2012, detailing the President’s plan for refinancing for borrowers. According to the YouTube post, “Brian Deese, Deputy Director of the National Economic Council, explains how President Obama’s plan would make it much easier for millions of American homeowners to refinance their mortgage and save hundreds of dollars every month.” This plan has been proposed, but has not been passed by Congress. As described in the video (see below at the end of this blog post), there are many advantages to refinancing, and the Obama plan would, if passed, offer more options for borrowers who need lower monthly payments and lower interest rates. But in the meantime, many FHA borrowers need refinancing and can’t afford to wait to | more...

April 18, 2012

Prison Time For Reverse Mortgage Scammers

By Joe Wallace

From time to time, we report news of housing scams that can affect FHA borrowers. It’s a way of raising the awareness that such scams exist, a reminder of the necessity of being careful in the loan process. The latest news from the FHA and HUD includes a report of three loan officers and a title agent who have been barred from doing business with the FHA/HUD following their convictions on fraud charges. The action was announced in a press release at HUD.gov, HUDNo.12-069: “The U.S. Department of Housing and Urban Development (HUD) today announced the indefinite debarment of three South Florida mortgage loan officers and a Pittsburgh title agent following their criminal convictions on charges they defrauded elderly borrowers, mortgage lenders and the Federal Housing Administration (FHA). Marcos Echevarria, | more...

April 3, 2012

FHA Mortgage Insurance Premiums

By Joe Wallace

Yesterday, we answered a reader question about FHA loan Mortgage Insurance Premiums. We were asked, “I thought that it was announced recently that FHA insurance premiums were being decreased, not increased?

March 30, 2012

FHA Loans and Credit Reports

By Joe Wallace

One frequently asked question about FHA home loans involves the credit check. Many borrowers want to know what credit score the lender is looking for, (many lenders require a minimum score of 620) but many more also want to know what kind of credit reporting data the loan officer needs to approve or deny an FHA home loan application. There are many areas the lender must review as part of the FHA loan application. A typical credit check includes a review of all credit inquiries over the last three months–one reason why many lending experts recommend not applying for new credit cards or other lines of credit before or during a home loan application. The lender must also review credit information from the last seven years of the applicant’s credit | more...

March 22, 2012

HUD Announces Housing Counseling Grants To Help Families Avoid Foreclosure

By Joe Wallace

The Department of Housing and Urban Development (HUD) has announced $42 million in housing counseling grants to 468 national, regional and local organizations. These grants are intended to help families find housing and avoid foreclosure. According to the press release HUDno.12-055, “Housing counseling grants will assist families in becoming homeowners, many for the first time, and remaining homeowners after their purchase. They also provide assistance to renters and the homeless, and offer financial literacy training to individuals and families.” These grants are awarded to local and regional housing counseling agencies, which in turn offer counseling services to those looking to find or keep their homes. “The HUD-approved counseling agencies this funding supports are crucial in helping struggling families on a one-to-one basis to manage their money, navigate the homebuying process, | more...

March 21, 2012

FHA Loan Reader Question: Divorce and FHA Loan Eligibility

By Joe Wallace

A reader asks, “I am separated from my husband…and want to buy me a home. We do not have any children together and I do not want alimony, he can have the house we once shared. He has agreed. I am using a down payment from my 401k from my job. What do you know about these situations?” While this question is far too general to answer specifically, we can talk about some of the basic issues a borrower in this situation might face. The big question in this situation is whether the reader is obligated on the first home. FHA home loan applications are reviewed for three basic things–credit rating, debt-to-income ratio, and verifiable income. There are other issues, but for this reader question these are “the big three”. | more...

March 20, 2012

Policy Changes For FHA Short Refinancing Loans: Debt-To-Income Ratio

By Joe Wallace

Recently we’ve been reporting on the latest policy changes to the FHA Short Refinancing Loan program. There’s one last change to cover–the new rules for debt to income ratios. For the FHA Short Refinancing Program, the maximum debt to income ratios have changed in some situations. The FHA mortgagee letter outlining changes FHA Short Refinance loans states: “Mortgagee Letter 2010-23, provides specific guidance for debt-to-income ratios for loans that

March 16, 2012

FHA Short Refinancing Loans For Underwater Borrowers With Conventional Mortgages

By Joe Wallace

Being “underwater” on a home loan means owing more on the property than the home is worth. In the last few years, this is a problem faced by more home owners across the nation due to the housing market crisis. In response to this, the Federal Housing Administration took action. In 2010, the FHA published a mortgagee letter outlining details of a plan called “FHA Refinance of Borrowers in Negative Equity Positions

March 7, 2012

President Obama Makes FHA Refinancing Loan Announcement

By Joe Wallace

According to a recent report by Reuters, millions of homeowners nationwide could save approximately one thousand dollars a year by taking advantage of a new plan for more affordable government-backed mortgages. President Barack Obama announced the plan on Tuesday, March 6; according to the Reuters report, it “would reduce fees on mortgages the Federal Housing Administration insures so as to enable borrowers with higher-cost FHA loans to refinance.” Shortly after the announcement and the Reuters story was published, the FHA issued a press release on the new plan. According to HUD No. 12-045, “FHA ANNOUNCES PRICE CUTS TO ENCOURAGE STREAMLINE REFINANCING“, the new program changes the amount of Up Front Mortgage Insurance Premiums, effective June 11, 2012. The press release states, “Today, Acting Federal Housing (FHA) Commissioner Carol Galante announced | more...